Sub-prime lending drove the U.S. housing bubble from 1998 until its collapse beginning in 2007. Since that time, real estate prices have fallen by 35% across the United States. Sub-prime was first hailed for its expansion of the number of people who could qualify for a mortgage. But many of those borrowers fudged on their income and net worth levels in order to borrow more than their true incomes would allow them to repay. Since the bubble burst and many sub-prime borrowers defaulted, the U.S. government has provided bank bail-outs deficit spending stimulus that will double the national debt from $9 trillion in 2007 to $18 trillion next year. Continue reading→